Us stocks moved higher on Monday pushing the Nasdaq Composite and the S&P 500 index into record territory after better than expected corporate earnings for the second quarter overshadowed a selloff in gold.
The Dow Jones Industrial Average most recently gained points or 0.2% at 18,120 points.
The S&P 500 index most moved 4 points or 0.19% to 2130.61, just 4 points off its all time closing high reached in April. Six out of the benchmark index’s ten sectors were higher on the day.
The Nasdaq Composite pushed further into record territory recording an intraday record during the session and remained on track to close at a record for the third straight session.
Investors turned their attention to a stream of second quarter corporate earnings with Morgan Stanley’s shares adding 0.1% despite its profit failing to beat. The bank however reported that its earnings per share exceeded expectations.
Also reporting impressive earnings today was oil service multinational Halliburton whose shares jumped by more than 2% on better than expected revenue and earnings per share.
“Over the last week we saw a nice relief rally in the stock market, but the market is still trapped in the trading range it had been for months,” Colin Cieszynski, chief market strategist at CMC Markets, told Market Watch.
“Meanwhile, earnings are beating expectations and we think as the market keeps consolidating and trading sideways, fundamentals will catch up. So, stretched valuations will not be as stretched by the end of the earnings season,”
The gains were however capped by a selloff in commodities with gold futures plummeting more than 4% to their lowest in more than five years while copper and oil fell too.
“The commodity markets are lower which are a concern because if those prices fall then economic growth isn’t as strong as we thought,” Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago, told Reuters.
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